--- title: "Outsourced debt collection: what it is and how it works" description: Relying on an external company for outsourced debt collection, such as We Are Fiber, allows you to focus on your business without distractions. image: https://www.wearefiber.com/hubfs/Imported_Blog_Media/Recupero-crediti-in-outsourcing_-1024x576-1.jpg --- [![](https://www.wearefiber.com/hs-fs/hubfs/Risorsa%2037.png?width=273&height=90&name=Risorsa%2037.png)](https://www.wearefiber.com/en/) - [Approach](https://www.wearefiber.com/en/approach) - [About](https://www.wearefiber.com/en/about) - [CSR projects](https://www.wearefiber.com/en/blog/tag/csr-projects) - [Knowledge base](https://www.wearefiber.com/en/blog/tag/knowledge-base) - [Governance](https://www.wearefiber.com/en/governance) - [Blog](https://www.wearefiber.com/en/blog) - [Careers](https://www.wearefiber.com/it/careers) - [Contacts](https://www.wearefiber.com/en/contacts) - [Customer Service](https://www.wearefiber.com/en/customer-service-in-outsourcing) - [Ticket management](https://www.wearefiber.com/en/ticket-management-in-outsourcing) - [Digital customer care](https://www.wearefiber.com/en/digital-customer-care) - [Help Desk](https://www.wearefiber.com/en/help-desk-in-outsourcing) - [Chatbot](https://www.wearefiber.com/en/chatbot-in-outsourcing-1) - [Booking office](https://www.wearefiber.com/en/booking-office-outsourcing) - [Smart assistance](https://www.wearefiber.com/en/smart-assistance-in-outsourcing) - [Back Office](https://www.wearefiber.com/en/back-office-in-outsourcing) - [Data entry](https://www.wearefiber.com/en/data-entry-outsourcing) - [Data enrichment](https://www.wearefiber.com/en/data-enrichment) - [Document management](https://www.wearefiber.com/en/gestione-documentale) - [Logistic management](https://www.wearefiber.com/en/gestione-logistica) - [Order management](https://www.wearefiber.com/en/gestione-ordini) - [Process Management](https://www.wearefiber.com/en/process-management-in-outsourcing) - [Control room](https://www.wearefiber.com/en/control-room-outsourcing) - [Quality audit](https://www.wearefiber.com/en/quality-audit-in-outsourcing) - [Robotic process automation](https://www.wearefiber.com/en/robotic-process-automation-in-outsourcing) - [Outbound Marketing](https://www.wearefiber.com/en/outbound-marketing) - Industry - [Healthcare](https://www.wearefiber.com/en/healthcare-in-outsourcing) - [Ecommerce](https://www.wearefiber.com/en/ecommerce-in-outsourcing) - [Food delivery](https://www.wearefiber.com/en/food-delivery-in-outsourcing) - [Retail](https://www.wearefiber.com/en/retail-in-outsourcing) - [Finance & Insurance](https://www.wearefiber.com/en/finance-e-insurance-in-outsourcing) - [Mobility](https://www.wearefiber.com/en/mobility-in-outsourcing) - [Travel](https://www.wearefiber.com/en/travel-in-outsourcing) - [B2B services](https://www.wearefiber.com/en/b2b-services-in-outsourcing) - [Approach](https://www.wearefiber.com/en/approach) - [About](https://www.wearefiber.com/en/about) - [CSR projects](https://www.wearefiber.com/en/blog/tag/csr-projects) - [Knowledge base](https://www.wearefiber.com/en/blog/tag/knowledge-base) - [Governance](https://www.wearefiber.com/en/governance) - [Blog](https://www.wearefiber.com/en/blog) - [Careers](https://www.wearefiber.com/it/careers) - [Contacts](https://www.wearefiber.com/en/contacts) # Outsourced debt collection: what it is and how it works January 31, 2022 4 minutes to read **Outsourcing debt collection** is becoming an increasingly common practice among companies, so they can access a range of practical and economic advantages. Firms, which need to recover money from their customers, often do not have the necessary skills or the internal structure to carry out particularly technical operations. Alternatively, much more simply, they don't want to get involved in lengthy lawsuits and waste time carrying out an action that is not part of their "core business". **We Are Fiber** offers various [outsourced front office services](https://www.wearefiber.com/en/2021/01/07/what-are-the-best-outsourced-front-office-services-for-businesses/) and an excellent **credit management and recovery system**, to relieve the internal resources of the company from secondary tasks.  ## **How much does credit recovery cost a company?** ![Outsourced debt collection](https://www.wearefiber.com/hs-fs/hubfs/Imported_Blog_Media/Recupero-crediti-in-outsourcing_-1024x576-1.jpg?width=1024&height=576&name=Recupero-crediti-in-outsourcing_-1024x576-1.jpg) Businesses that decide to undertake **debt collection on their own** face rather high expenses. It is estimated that companies use debt collection for over 55% of their turnover each year. It must be considered that the cost of internal human resources, intended for the management of unpaid invoices, weighs more than 5% of the operating costs for Italian companies. Unpaid credit causes economic damage not only in terms of non-collection, but also for all financial charges deriving from the internal administrative management of credit recovery activities. ## **Outsourcing debt collection: when to outsource** **Outsourcing debt collection** is suitable for those businesses that have to follow various activities that are difficult to manage internally. Regardless of the size of the company, it is an operation that significantly reduces costs and improves internal productivity. In the context of **credit management**, not only should the recovery phase be considered, but also the process of the active cycle of working capital. The **BPO** (business process outsourcing) of credit management therefore becomes an excellent strategic solution and guarantees the following advantages, which we analyze below: - cut to fixed costs; - possibility of using specialized skills and methodologies; - leaner and faster procedures for debt collection by way of outsourcing; - customization of credit recovery systems.   ## **Debt collection outsourced: a nice cut to fixed costs** The **outsourcing of debt collection** primarily brings economic benefits. Fixed costs become variable, reducing the costs for the company and the workload for internal resources. Internal credit management imposes fixed costs on a company, such as the creation of an ad hoc sector that must be adequately trained and prepared. Furthermore, these costs are also incurred in periods during which they are not necessary. With the outsourcing of the service, on the other hand, costs are linked exclusively to the result obtained and have a limited period of time.  ### **Skills and specialized tools** A **company specialized in credit recovery**, such as We Are Fiber, is capable of managing and recovering credits with specialized skills and a “know how” built up over time. The service offered is more effective and punctual than a company that has never operated in this sector and lacks the essential skills required. We at We Are Fiber not only have experience in debt collection, but we are able to make the action more targeted according to the customer’s needs. We provide the partner company with tools and methodologies that are consolidated and tested, increasing its own level of skills. Investing in the outsourcing of debt collection means optimizing and improving the company's assets. ### **Lighter and faster procedures** Relying on an **outsourced credit recovery center** allows you to improve some internal company procedures, starting a positive cycle. Due to in-depth knowledge in the field, We Are Fiber provides you with expert consultants who can identify internal issues and improve the preliminary management of the active cycle. Why was there a delay in payment? Do we need to improve communication? How and where should we intervene to speed up the credit recovery process? Our consultants are able to answer these questions and many others, starting a general improvement process of all internal procedures, which become leaner and faster. In this way, costs are significantly reduced and the entire internal work process of the company is optimized. ### **Custom credit recovery** **Credit recovery** is a rather delicate and, in some ways, even thorny operation. For a company, it becomes somewhat embarrassing to recover credits in a "forced" way, with the risk of ruining the commercial relationship with customers. The client company, relying on an **external credit recovery service**, is not directly involved, which is a huge benefit. We at We Are Fiber, in agreement with the company, draws up the most appropriate customized credit strategies to safeguard the business relationship. If you want an **outsourced debt collection service** to focus more on your "core business", **[contact us at We Are Fiber](https://www.wearefiber.com/en/schedule/)** to craft the strategy that best suits your needs.   - - - - - [mailto:?subject='https://www.wearefiber.com/en/blog/2021/01/28/outsourced-debt-collection-what-it-is-and-how-it-works'](mailto:?subject='https://www.wearefiber.com/en/blog/2021/01/28/outsourced-debt-collection-what-it-is-and-how-it-works') [Outsourcing and Process management solutions](https://www.wearefiber.com/en/blog/tag/outsourcing-and-process-management-solutions) ### Recent posts ### Post tag - [Social and customer care service (100)](https://www.wearefiber.com/en/blog/tag/social-and-customer-care-service) - [Outsourcing and Process management solutions (62)](https://www.wearefiber.com/en/blog/tag/outsourcing-and-process-management-solutions) - [Data entry solutions (27)](https://www.wearefiber.com/en/blog/tag/data-entry-solutions) - [Back office and help desk solutions (26)](https://www.wearefiber.com/en/blog/tag/back-office-and-help-desk-solutions) - [Ecommerce and order management (25)](https://www.wearefiber.com/en/blog/tag/ecommerce-and-order-management) - [Teleselling and telemarketing (17)](https://www.wearefiber.com/en/blog/tag/teleselling-and-telemarketing) - [Logistics management and food delivery (6)](https://www.wearefiber.com/en/blog/tag/logistics-management-and-food-delivery) - [Knowledge base (5)](https://www.wearefiber.com/en/blog/tag/knowledge-base) - [CSR Projects (2)](https://www.wearefiber.com/en/blog/tag/csr-projects) - [healthcare (1)](https://www.wearefiber.com/en/blog/tag/healthcare) See all ## Related Posts ## [A complete guide to outsourcing: what it is, advantages and how to exploit it](https://www.wearefiber.com/en/blog/2021/06/17/a-complete-guide-to-outsourcing-what-it-is-advantages-and-how-to-exploit-it) January 31, 2022 **Outsourcing** is a set of practices adopted by private companies, but also by public institutions,... [CONTINUE READING](https://www.wearefiber.com/en/blog/2021/06/17/a-complete-guide-to-outsourcing-what-it-is-advantages-and-how-to-exploit-it) ## [Sentiment analysis: what it is and how to exploit it for companies](https://www.wearefiber.com/en/blog/2021/03/17/sentiment-analysis-what-it-is-and-how-to-exploit-it-for-companies) January 31, 2022 **Sentiment analysis** is a form of analysis focusing on the views and interactions that users have... [CONTINUE READING](https://www.wearefiber.com/en/blog/2021/03/17/sentiment-analysis-what-it-is-and-how-to-exploit-it-for-companies) ## [Customer satisfaction in a company: how to improve it and which tools to use](https://www.wearefiber.com/en/blog/2021/01/26/customer-satisfaction-in-a-company-how-to-improve-it-and-which-tools-to-use) January 31, 2022 **Customer satisfaction** equates to a greater number of sales and a higher level of customer... 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Firms, which need to recover money from their customers, often do not have the necessary skills or the internal structure to carry out particularly technical operations. Alternatively, much more simply, they don't want to get involved in lengthy lawsuits and waste time carrying out an action that is not part of their core business. We Are Fiber offers various outsourced front office services and an excellent credit management and recovery system, to relieve the internal resources of the company from secondary tasks. How much does credit recovery cost a company? Businesses that decide to undertake debt collection on their own face rather high expenses. It is estimated that companies use debt collection for over 55% of their turnover each year. It must be considered that the cost of internal human resources, intended for the management of unpaid invoices, weighs more than 5% of the operating costs for Italian companies. Unpaid credit causes economic damage not only in terms of non-collection, but also for all financial charges deriving from the internal administrative management of credit recovery activities. Outsourcing debt collection: when to outsource Outsourcing debt collection is suitable for those businesses that have to follow various activities that are difficult to manage internally. Regardless of the size of the company, it is an operation that significantly reduces costs and improves internal productivity. In the context of credit management, not only should the recovery phase be considered, but also the process of the active cycle of working capital. The BPO (business process outsourcing) of credit management therefore becomes an excellent strategic solution and guarantees the following advantages, which we analyze below: cut to fixed costs; possibility of using specialized skills and methodologies; leaner and faster procedures for debt collection by way of outsourcing; customization of credit recovery systems. Debt collection outsourced: a nice cut to fixed costs The outsourcing of debt collection primarily brings economic benefits. Fixed costs become variable, reducing the costs for the company and the workload for internal resources. Internal credit management imposes fixed costs on a company, such as the creation of an ad hoc sector that must be adequately trained and prepared. Furthermore, these costs are also incurred in periods during which they are not necessary. With the outsourcing of the service, on the other hand, costs are linked exclusively to the result obtained and have a limited period of time. Skills and specialized tools A company specialized in credit recovery, such as We Are Fiber, is capable of managing and recovering credits with specialized skills and a “know how” built up over time. The service offered is more effective and punctual than a company that has never operated in this sector and lacks the essential skills required. We at We Are Fiber not only have experience in debt collection, but we are able to make the action more targeted according to the customer’s needs. We provide the partner company with tools and methodologies that are consolidated and tested, increasing its own level of skills. Investing in the outsourcing of debt collection means optimizing and improving the company's assets. Lighter and faster procedures Relying on an outsourced credit recovery center allows you to improve some internal company procedures, starting a positive cycle. Due to in-depth knowledge in the field, We Are Fiber provides you with expert consultants who can identify internal issues and improve the preliminary management of the active cycle. Why was there a delay in payment? Do we need to improve communication? How and where should we intervene to speed up the credit recovery process? Our consultants are able to answer these questions and many others, starting a general improvement process of all internal procedures, which become leaner and faster. In this way, costs are significantly reduced and the entire internal work process of the company is optimized. Custom credit recovery Credit recovery is a rather delicate and, in some ways, even thorny operation. For a company, it becomes somewhat embarrassing to recover credits in a forced way, with the risk of ruining the commercial relationship with customers. The client company, relying on an external credit recovery service, is not directly involved, which is a huge benefit. We at We Are Fiber, in agreement with the company, draws up the most appropriate customized credit strategies to safeguard the business relationship. If you want an outsourced debt collection service to focus more on your core business, contact us at We Are Fiber to craft the strategy that best suits your needs.", "author" : { "@type" : "Person", "name" : "marzia", "sameAs" : "", "url" : "https://www.wearefiber.com/en/blog/author/marzia" }, "dateModified" : "31/01/2022", "datePublished" : "31/01/2022", "headline" : "Outsourced debt collection: what it is and how it works", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://f.hubspotusercontent-eu1.net/hubfs/25104942/Imported_Blog_Media/Recupero-crediti-in-outsourcing_-1024x576-1.jpg", "width" : 750 }, "mainEntityOfPage" : "https://www.wearefiber.com/en/blog/2021/01/28/outsourced-debt-collection-what-it-is-and-how-it-works", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://25104942.fs1.hubspotusercontent-eu1.net/hubfs/25104942/Risorsa%2037.png" }, "name" : "", "url" : "www.wearefiber.com" } } ```